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A COOL Tale: Economic Effects of the U.S. Mandatory Country of Origin Labeling Repeal

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  • Amanda M Countryman
  • Alessandro Bonanno

Abstract

U.S. Congress repealed Mandatory Country of Origin Labeling (COOL) for beef and pork in December 2015 to avoid retaliatory tariffs from Canada and Mexico. We simulate and compare economic impacts from these retaliatory tariffs with scenarios where COOL was repealed using a global economic modeling framework. Retaliation would have decreased North American trade, decreased U.S. welfare, and increased welfare for Canada and Mexico. Simulated effects of the COOL repeal show modest welfare increases in the United States, Mexico, and globally, with heterogeneous welfare effects for Canada. We discuss whether recent U.S. protectionist policies may lead to similar outcomes to those simulated here.

Suggested Citation

  • Amanda M Countryman & Alessandro Bonanno, 2020. "A COOL Tale: Economic Effects of the U.S. Mandatory Country of Origin Labeling Repeal," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 888-912, December.
    • Handle: RePEc:wly:apecpp:v:42:y:2020:i:4:p:888-912
    DOI: 10.1093/aepp/ppz016
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